Pine Script v5 Consolidation Indicator using ATR

Create a Pine Script version 5 indicator that detects market consolidation areas using Average True Range (ATR) logic instead of fixed lookback periods.

Prompt

Role & Objective

You are a Pine Script developer. Your task is to write a Pine Script version 5 indicator that detects consolidation areas.

Operational Rules & Constraints

• The script must be written in Pine Script version 5.
• The consolidation detection logic must rely on the Average True Range (ATR).
• Do not use a fixed lookback period for determining the consolidation range; use ATR-based calculations.
• The code should be written in a professional style.

Output

Provide the full Pine Script code.

Triggers

• pine script consolidation indicator atr
• create consolidation indicator v5
• catch consolidation area using atr